India is referred to as the “Pharmacy of the World” and rightly so because of its high volume of low-cost and effectual common pharmaceutical supplies. Medical products export in India has emerged as the most lucrative trading option in recent times. The country is the biggest supplier of generic medications with a market share of 20% of the world’s total supply volume along with about 60% of the world’s vaccinations.
If we talk about the Indian pharmaceutical industry, OTC drugs, generics, APIs, vaccines, biosimilars, custom research manufacturing, etc. are the major segments that have collectively contributed to total yearly revenue of $36.7 billion in FY 2019-20.
India’s Contribution to The World Pharmaceutical Landscape Is Crucial
• India extensively exports medicines to the Middle East, Asia, CIS, Latin America & the Caribbean (LAC), North America, Africa, the EU, ASEAN, and other European regions.
• Two-thirds of India’s export of medicines are targeted toward Africa, Europe, and NAFTA.
• In FY21–22, India’s contribution towards medicine export: USA ($7,101,6 million), the UK ($704,5 million), South Africa ($612,3 million), Russia ($597,8 million), and Nigeria ($588.6 million).
• The value of India’s pharmaceutical exports to the USA grew at a CAGR of 6.9% in the last three years. Over the same period, the growth was registered for a CAGR of 3.8% for the UK and 7.2% for Russia, respectively.
How to Register for International Shipping of Pharmaceuticals?
• If you want to export pharmaceuticals to the international market, you need to get yourself registered for medical products export in India.
• Visit the official DGFT website and select the “Online Application” button, in the drop-down menu select the “IEC” option.
• Use your PAN no. to log in to the system, now, select “Next.”
• Click on the “File” tab and press the “New IEC Application Details” button.
• Complete the application form in a new window.
• Click on the “Upload Documents” option to submit the form.
• You must click the “Branch” button to enter additional information about their branches.
• Use the “Director” tab for adding information on the company’s directors.
• In the end, click the “EFT” option to finish the online IEC application. You need to pay the necessary processing fee of INR 250.
The applicants must submit a hard copy of their application and the necessary supporting documentation to the DGFT’s office within 15 days of submitting an online application.
Documents Required for Shipping Medicines Abroad
• Company PAN number
• Incorporation Certificate
• Bank account statements and other financial documents
• Indian Trade Classification (HS) of the product
• Bankers Certificate and other customs documents
• IEC Number
• A leaf of the canceled cheque
• Proof of ownership of business premises or rental agreement
• WHO: GMP certification
Other Necessary Components for Medical Products Export in India
Head start to the medicine export business requires the fulfillment of a few certifications and documentation requirements including a medical license number, GST identity number, registration, etc. Apart from these you also need to take care of the following components:
IEC (Import/Export Code) Registration
Only licensed pharmaceutical businesses are permitted to export medicines. Therefore, first, you need the IEC (Import/Export Code) Number for the Medical Products Export in India. Apply for IEC Number to the Director General of Foreign Trade. You cannot transport any goods into or out of the nation without an IEC code.
Regulatory Compliance
Every exporter or importer of pharmaceuticals goods needs to adhere to the regulatory compliance of a country and officially register their product there. One should obtain permission from India’s drug controller general.
Strategy and Market Research
For attaining success in exporting pharmaceuticals, businesses need to have proper strategies and market research in place. They should have the required vendors or buyers for their goods which can only be achieved by systematic market research.
Reliable shipping strategy
Order fulfillment is an important aspect of any export-import business. Your business should have a reliable shipping partner or freight forwarding company to carry out product delivery to foreign lands. Professional clearing agents are also crucial for the final customs clearance phase if you want to export medicines.
India has been strengthening its position as a top exporter of medicines and vaccine supplies in recent years. If you are looking to spread your business in the medicine export segment, MeeraShree can be the ideal destination that can assist you in achieving your goals. For more information, get in touch with our experts at MeeraShree.